Usdjpy Sellers Eye Support

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Usdjpy Sellers Eye Support

Usd/Jpy Sellers Eye 152.00 Ahead Of Us Gdp

The USD/JPY is completely under the grasp of sellers as they eye the 152.00 handle as the next target on Thursday. If we look back in the past few weeks, the USD/JPY was trading above 160.00. Since then, the pair has moved lower amid several intervention attempts by BoJ and the fundamental changes.

Additionally, the policy divergence between the US Federal Reserve and the Bank of Japan has also led to the unwinding of the carry trades. That's another reason why the Japanese yen has managed to reach a 3-month high against the USD.

Usd/Jpy Next Support At 150.94

Now, the traders await the US GDP data, which will provide information on how the high rates and inflation have impacted the US economy.

Technical analysis shows that USD/JPY is in a bearish trend as it trades below the Ichimoku Cloud. Similarly, momentum indicators such as RSI also show that the pair is under the influence of the sellers.

If the USD/JPY turns even lower and crosses the 152.00 in a bearish manner, it will have to establish a new support zone. In that case, the RSI will also be oversold, which will lead to a short-term recovery phase.

Below 152.00, the next support for the USD/JPY is around 151.86, the low from 3rd May. Once this support is lost to the bears, the next target will be 150.94.

Conversely, a trend shift in the USD/JPY will allow the bears to target the next resistance at 153.00. However, a shift in the long-term trend will require the bulls to reclaim the 156.00 level as it is situated above the Kumo.

Right now, the bearish pressure continues to send USD/JPY towards new lows with consistent weekly losses of 1-2%. Just a few months ago, the USD/JPY was at historic highs above 160.00, and now it is struggling to hold at support levels.

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